More money needed for health plan: Hames

Western Australia has accused the Federal Government of using aggressive tactics to gain support for its health reform package.

WA's Acting Premier, Kim Hames, broadly supports the Federal health takeover, but will not back the plan in its current form.

He says the proposed $76 million a year extra in funding is small, considering that the state must give up 30 per cent of its GST revenue to receive the payment.

Dr Hames has thrown his support behind the Victorian Premier, John Brumby, arguing that the states are being bullied into supporting the plan.

"I thought his comments of states being held to ransom was a very good one," he says.

Dr Hames says WA continues to broadly support the health plan but the funding structure must change.

"We're not interested in the Commonwealth just taking our money and calling it their own. We'd be happy with a 50/50 contribution which means a significant increase in commonwealth government funding and then we think we could come to some arrangements."

The President of the Australian Medical Association in WA, Gary Geelhoed also supports Victoria's alternative health plan.

"It's very encouraging that new funds are going into health but when you actually look at what they're putting in it really isn't enough.

"I think we would tend to agree with the model that says it is a 50-50 split."

Professor Geelhoed says the Rudd Government plan will not deliver the best results.

"We don't want a monopoly around the country where we have one size fits all and we have micro-management from Canberra.

"Clearly something in Kununurra is very different from to say Warrnambool in Victoria. We need a system that can adapt locally to the best needs of the population."

The Federal health Minister Nicola Roxon says the Government is prepared to consider changes to its final health proposal.

"This is the final proposal that we'll be taking to the meeting.

"Of course, once the Prime Minister and Premiers get behind those locked doors they will discuss any other issues that they choose to."